In June 2011, CVC Funds invested US$275 million in PT Link Net (‘Link Net') through a combination of primary shares in Link Net and bonds issued by PT First Media, the parent company of Link Net. CVC also has an option to acquire additional shares in Link Net, which will allow CVC to increase its stake to 49%.
Link Net is the second largest fixed broadband and cable TV operator in Indonesia. Its network passes over 500,000 homes across Greater Jakarta, Surabaya and Bali, which have combined population of approximately 37 million. Link Net owns and operates the largest two-way hybrid fibre-coaxial cable domestically, delivering high speed internet access services to retail and business customers, including the delivery of data communication services over its fibre optic lines, and cable TV services.
Link Net is Indonesia's leading provider of high speed fixed broadband and cable TV through its proprietary network. It operates in an attractive, underpenetrated market, with significant barriers to entry. The business has achieved strong sales and EBITDA growth as subscriber base expanded. It is currently the only player which can truly offer bundled high speed broadband and cable TV services in Indonesia.
The demand for broadband services continues to grow in Indonesia, driven largely by the rising middle class. Our strategy is to be first-to-market with a superior network architecture, and to leverage that network to deliver innovative internet and TV services that make us the first choice for both consumers and businesses. The combination of a unique market opportunity and our aggressive network rollout continues to drive significant growth in our business.